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Spatial Concentration of the Informal Small and Cottage Industry in Indonesia

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Author Info
Aloysius Gunadi, Brata

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Abstract

This paper discusses the spatial concentration of the small and cottage industry without legal entity in Indonesia. The study period is 1998-2004 or a period after economic crisis which commonly known as the ‘era reformasi’ (reformation era). By employing the Herfindahl index, this study found an increase in the spatial concentration of the informal small and cottage industry during this period. It argues that reformation tend to increase the spatial concentration of the informal small and cottage industry. Beside the economic crisis that have suffered urban and Java areas, other possible explanation on the connection between trend of the concentration and the reformation is what commonly known as the cost of formality.

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File URL: http://mpra.ub.uni-muenchen.de/12622/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 12622.

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Date of creation: 2007
Date of revision: 2008
Handle: RePEc:pra:mprapa:12622

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Related research
Keywords: spatial concentration; small and cottage industry; reformation; Indonesia;

Find related papers by JEL classification:
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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References listed on IDEAS
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  1. Schneider, Friedrich & Klinglmair, Robert, 2004. "Shadow Economies around the World: What Do We Know?," IZA Discussion Papers 1043, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Friedrich Schneider, 2004. "Shadow Economies around the World: What do we really know?," IAW Discussion Papers 16, Institut für Angewandte Wirtschaftsforschung (IAW). [Downloadable!]
    Other versions:
  3. Hal HILL & Takashi SHIRAISHI, 2007. "Indonesia After the Asian Crisis," Asian Economic Policy Review, Japan Center for Economic Research, vol. 2(1), pages 123-141. [Downloadable!] (restricted)
  4. Audretsch, David B & Keilbach, Max, 2005. "Entrepreneurship Capital - Determinants and Impact," CEPR Discussion Papers 4905, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Fitria Fitrani & Bert Hofman & Kai Kaiser, 2005. "Unity in diversity? The creation of new local governments in a decentralising Indonesia," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 41(1), pages 57-79, April. [Downloadable!] (restricted)
  6. Simon C Parker, . "The Economics of Entrepreneurship: What We Know and What We Don't," Papers on Entrepreneurship, Growth and Public Policy 2005-18, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
  7. Tulus Tambunan, 2007. "Entrepreneurship Development: Smes In Indonesia," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 95-118. [Downloadable!] (restricted)
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